The BBC is about to be governed in a completely new way

The UK's culture, media, and sport secretary
announced a sweep of changes to the BBC on Thursday — most
notably, completely changing the way it is governed.

Speaking in the House of Commons on Thursday, John Whittingdale
announced the BBC Trust is not "fit for purpose" and will be
abolished.

Instead, there will be a new "unitary" board of governors
responsible for making sure the public service broadcaster's
output meets its obligations, including a requirement for
"distinctive" content, independent of political bias.

BBC director general Tony Hall will still be responsible for
editorial decisions, but the new board will consider
complaints.

For the first time, the BBC will have the ability to appoint the
majority of this 12-to-14-member board. In the past, the
government selected the majority of the BBC Trust and BBC
Governors board.

In another big change, UK communications regulator Ofcom will now
be given the power to assess whether the BBC's output is
negatively affecting its commercial rivals in the UK.
Whittingdale said the BBC has a 33% share of TV, a 53%
share in radio, and the third most-popular website in the UK.

The National Audit Office will now be responsible for regulating
the BBC's commercial arm.

Here's an outline of the biggest changes to the BBC
announced by Whittingdale on Thursday:

The BBC can now appoint the
majority of its board members for the first time (not
government.)

Current BBC Trust Chair Rona
Fairhead will remain in post until the end of her term in
2018.

Ofcom will become the
external regulator for the publicly-funded BBC. The National
Audit Office will be the BBC's financial auditor.

Whittingdale wants the BBC to
be the "leading broadcaster in addressing diversity."

The BBC has a duty to produce
"distinct" content. Indeed, the whitepaper announcing the
changes is titled: "A BBC for the future: a broadcaster of
distinction."

BBC talent onannual
compensation of
more than £450,000 will have their salaries published. Managers earning more
than £150,000 per year will also have their salaries
published.

The £145.50 annual Licence
Fee freeze will increase in line with inflation from 2017
until 2022.

Those watching catch-up
content on the BBC iPlayer will also be required to paythe Licence Fee.

Additional government funding
will be provided to the BBC's commercial World Service
arm.

The changes are detailed in a whitepaper on the future of the
BBC, published on Thursday. It was necessary because the BBC is
governed by a Royal Charter and the current Charter will expire
at the end of 2016.

The whitepaper represents the culmination of 10 months of work
looking into how the BBC should be run.

The government will now listen to feedback from "key groups,"
including parliament. It expects the new 11-year Charter to be
effective from January 1, 2017.

This White Paper delivers a mandate for the strong, creative BBC
the public believe in. A BBC that will be good for the creative
industries - and most importantly of all, for Britain.

There has been a big debate about the future of the BBC.
Searching questions have been asked about its role and its place
in the UK. That’s right and healthy, and I welcome that debate.

At the end, we have an 11-year Charter, a licence fee guaranteed
for 11 years, and an endorsement of the scale and scope of what
the BBC does today. The White Paper reaffirms our mission to
inform, educate and entertain all audiences on television, on
radio and online.

However, Hall added,
in a statement on the BBC website, that the corporation did
not agree the appointment proposals for the new unitary board
"are yet right" and that it will continue to disucss with the
government how to arrange the board in order to preserve the
BBC's independence.